CHS Q3 profit dips amid refinery maintenance, but ag segment posts strong gains

CHS, the largest farmer-owned cooperative in the United States, reported net income of $232.2 million for the third quarter of fiscal 2025, a decline from $297.3 million a year earlier, as maintenance at its Kansas refinery weighed on energy earnings. Revenue for the quarter rose slightly to $9.8 billion from $9.6 billion in the prior-year period.

The company attributed the decline in quarterly profit to a pretax loss of $50.1 million in its energy segment, a swing from a $97.9 million gain last year. The drop was primarily linked to planned major maintenance at the McPherson, KS, refinery and higher compliance costs for renewable fuel credits.

In contrast, the cooperative’s agronomy business saw improved performance. The agriculture segment posted pretax earnings of $151 million, up $42.5 million from the previous year, reflecting stronger demand and margins for wholesale and retail crop inputs during a favorable planting season. However, CHS noted reduced profitability in grain and oilseed processing due to adverse global market conditions and mark-to-market timing impacts.

“Our employees remain committed to maintaining a high level of customer service while driving efficiency improvements,” said Jay Debertin, president and CEO of CHS Inc. He added that favorable spring weather contributed to robust agronomy sales, positioning the company well during a key period for planting activity.

The nitrogen production segment earned $54.6 million in pretax profit, nearly flat compared to a year ago, supported by favorable market pricing for urea. Meanwhile, corporate and other activities generated $103.3 million in pretax income, a notable increase driven by continued strong performance from the company’s Ventura Foods joint venture.

For the first nine months of fiscal 2025, CHS reported net income of $401.2 million, down significantly from $990.5 million during the same period in fiscal 2024, reflecting ongoing pressure across energy and grain markets.

CHS operates across 65 countries and had revenue of $39 billion in fiscal 2024. The cooperative, which is owned by farmers, ranchers, and member cooperatives, remains active in agronomy, grain marketing, foods, and energy distribution.